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Commerce · Q894

Accounting

Graduate and Post Graduate · Commerce · question 894

Q894

The profits of a firm for the last five years are Rs. 80,000, Rs. 90,000, Rs. 70,000, Rs. 85,000 and Rs. 1,00,000 respectively. The goodwill of the firm is calculated on basis of three year purchase of average profits of five years. The value of goodwill is

A.
Rs. 89,000
B.
Rs. 2,25,000
C.
Rs. 2,55,000
Answer
D.
Rs. 4,25,000

Answer: Option C

Solution

Answer: Option C
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